The Gucci Group has blamed a “challenging” second quarter for the 10.6% decline in sales seen in the first half of the year. In Europe, retail sales plummeted 21.3% on a constant exchange rate basis, suffering from the slowdown in tourism, particularly in France and Italy. Retail sales dropped 11.6% in the US and 4.7% in Asia excluding Japan.

The Italian luxury goods brand cites the SARS epidemic for the Asian decline, with a 9.3% weakening being seen in Hong Kong. Revenues in South Korea and Japan, however, rose 14% and 21.4% respectively. In Japan sales were down 2.2%, though very positive results were recorded for April (+7%), May (+10%) and June (+10%).

Between November 2002 and April 2003, Pinaut Printemps Redoute (PPR), which owns 61% of Gucci, reported a 2.9% decline in actual sales. From February to April 2003, actual activity dropped 6.7% with the SARS epidemic, the downturn in tourist travel linked to the war with Iraq and the sluggish global economy being the main causes. Gucci’s activity fell 1.7% on a comparable basis over the same period.

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